GoPro, Inc. (GPRO - Free Report) recently announced that the company’s three-camera HERO7 lineup recorded solid sell-through during the period of Black Friday and Cyber Monday.
Notably, the company’s $399 flagship camera — HERO7 Black — achieved the highest retail unit sales of the three cameras. Moreover, the camera had witnessed record levels of social engagement at launch and continues to achieve the highest post-launch sell-through of any new camera in the history of the company.
The HERO7 Black’s standout feature — HyperSmooth — set a new bar with in-camera, gimbal-like video stabilization. TimeWarp, a stabilized time lapse function, provides a superior effect to videos as well as the ability to stream live from GoPro to social media platforms. Growing product sales will help the company enhance its top line, going forward.
Currently, GoPro holds more than 85% of the action-camera market in the United States by unit volume. The company has been aiming toward transforming itself from the ‘camera maker’ to ‘content maker’ and has taken significant steps to diversify into higher-margin businesses including video editing and virtual reality. It is developing various types of software solutions and hardware to curtail the complexity of managing, editing and sharing contents on different media platforms.
The company has made significant improvements to its editing software on the back of its acquisition of two of the most popular mobile editing apps, Replay (which has been rebranded as Quik) and Splice, which are experiencing robust adoption. The integration of these two apps has simplified mobile content creation for GoPro as well as for smartphone users, thus offering a content enabling platform to millions of users.
In the past month, the Zacks Rank #2 (Buy) stock has lost 11.1% against the industry’s growth of 1.5%.
Notably, GoPro is taking steps to solidify its position in the burgeoning virtual reality market. Overall, the company remains optimistic about its prospects in end markets mainly on account of enhanced marketing programs, expense control measures, improving channel management as well as upcoming product launches.
Other Stocks to Consider
Some other top-ranked stocks in the industry are PCM, Inc. (PCMI - Free Report) , Sony Corporation (SNE - Free Report) and lululemon athletica inc. (LULU - Free Report) . All these companies carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PCM surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 4.67%.
Sony outpaced estimates thrice in the preceding four quarters, the average earnings surprise being 44.72%.
lululemon athletica surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 19.22%.
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